Question: Nathan T Corporation is comparing two different options. Nathan T currently uses Qption 1 , with revenues of 565 ,oco per year, maintenarice expenses of

 Nathan T Corporation is comparing two different options. Nathan T currently

Nathan T Corporation is comparing two different options. Nathan T currently uses Qption 1 , with revenues of 565 ,oco per year, maintenarice expenses of 5,000 per year, and operating expenses of $26,000 per year, Option 2 provides revenues of tho,000 per. year, malntenance espenses or 55, ooo per yes; and operating espenses or $22,000 per yoar. 0 ptlon 1 employs a plece or equipinent Which was upgraded 2 years ako at a cost of $17,000. If Option 2 is chosen, it will free up resources that will brine in an additional $4,000 of revenue. Complete the following table to show the change in income from choosing Qption 2 versus Option 1 . Designate Sunk coete with an "S" otherwise select "NA". (Enter negative amounts using elther a negative sign preceding the number e.g. -4S or parentheseses. (45).) Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,000 units at $30 each. Maize will incur additional costs of $4 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45) At Rargain Flectronlce, it costs $30 per unlt (\$20 varlable and $10 fixed) to make an Mp3 player that normally sells for 545 . A forelgn wholesaler offers to buy 3,000 units 3t525 esch. Bsrgsin Electronics will incur special shipping costs of $3 per unit A suming that Bargain Electronics has excess operating capscity, indicate the ret incorme (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses eg. (45).)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

\f